Financial Institution Letter FIL-126-2005 Federal Deposit Insurance Corporation December 21, 2005 550 17th Street NW, Washington, D.C. 20429-9990 CLASS ACTION SETTLEMENTS Guidance on Filing Notices of Proposed Class Action Settlements Summary: The FDIC is providing guidance on new requirements for filing notices of proposed class action settlements involving financial institutions for which the FDIC is the primary federal regulator. Distribution: Highlights: FDIC-Supervised Banks (Commercial and Savings) • Section 1715 of Title 28 of the United States Code specifies new requirements for Suggested Routing: notifying appropriate state and federal Chief Executive Officer Compliance Officer officials of proposed class action settlements. Legal Counsel • The new notification requirements apply to Related Topics: depository institutions, depository institution None holding companies, foreign banks, and nondepository institution subsidiaries of one of these entities that are defendants in Attachment: proposed class action settlements. None • The financial institution must notify its Contacts: primary federal regulator if some or all of the Regional Director of the FDIC Regional Office matters alleged in the class action are responsible for supervision of the involved financial subject to regulation or supervision by that institution regulator. • State-chartered depository institutions must also notify the state bank supervisor of the Note: state in which the defendant is incorporated FDIC financial institution letters (FILs) may be accessed from the FDIC's Web site at or chartered if some or all of the matters www.fdic.gov/news/news/financial/2005/index.html. alleged in the class action are subject to regulation or supervision by the state To receive FILs electronically, please visit supervisor. http://www.fdic.gov/about/subscriptions/fil.html. Paper copies of FDIC financial institution letters • FDIC-supervised institutions must file a may be obtained through the FDIC's Public notice of proposed class action settlement Information Center, 801 17th Street, NW, Room with the FDIC within 10 days of it being filed 100, Washington, DC 20434 (1-877-275-3342 or in court. At a minimum, the notice should 202-416-6940). contain a description of the lawsuit, the proposed settlement, and a point of contact (e.g., bank counsel) should additional information be required. • Notices must be sent to the Regional Director of the FDIC’s Regional Office responsible for supervision of the involved financial institution.
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